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Determine the restaurants margin of safety

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Reference no: EM13523469

Pizza Pizazz is a local restaurant. Price and cost information follows:

Price per pizza $13.01
Variable cost per pizza
Ingredients 2.29
Direct labor 1.02
Overhead (box, etc.) 0.23
Fixed cost per month $2,841.00

1. Determine Pizza Pizazz's break-even point in units and sales dollars.

Break-even units:
Break-even sales dollars:

2. Determine the restaurant's margin of safety if it currently sells 400 pizzas per month. (Round your intermediate calculations to 2 decimal places and final answer to the nearest whole number.

Margin of safety:

3. Determine the number of pizzas that Pizazz must sell to generate $1,800 in profit.

Reference no: EM13523469

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